SanDisk Earnings Preview: Enterprise SSDs to Drive Results Again — forbes.com

SanDisk is scheduled to announce its third quarter earnings on October 16. The company posted slightly higher revenues than the upper end of its guidance of $1.6 billion in Q2 on the back of solid performance from its solid state drive division. SSDs contributed 29% of SanDisk’s net revenues for the quarter – up from 28% in the previous quarter and 16% in the prior year quarter. Additionally, SanDisk’s non-GAAP gross margin improved by around 130 basis points over the prior year quarter to 48% during Q2 2014, primarily due to the increasing mix of SSD product sales. However, in line with the company’s expectations, margins were sequentially lower than the first quarter owing to higher demand for low-margin custom embedded storage solutions. SanDisk expects margins to remain similar to Q2 in the September quarter and net revenues to seasonally increase.

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